In 1960, national defense comprised about _____ of federal government expenditures

When the required reserve ratio is decreased:

a. the excess reserves of member banks are reduced, but the money multiplier is not affected. b. the excess reserves of member banks are reduced, and the money multiplier is increased. c. the excess reserves of member banks are increased, but the money multiplier is not affected. d. the excess reserves of member banks are increased, and the money multiplier is increased.

If increases in government spending lead to inflation, the value of the multiplier is reduced

a. True b. False Indicate whether the statement is true or false